Tan See Leng on transition framework for carbon tax and Energy Efficiency Fund

The Economic Development Board has been engaging affected companies on the details and implementation of the carbon tax transition framework, which will be calibrated to spur companies to invest in decarbonisation. Transitory allowances will be provided only for a proportion of the companies’ emissions, and they are based on internationally recognised efficiency benchmarks where available or the companies’ decarbonisation plans. The remaining emissions will be subject to the prevailing headline carbon tax. The Government will review and adjust the allowances based on how companies have fared in lowering their emissions, as well as international developments and advancements in decarbonisation technologies. Second Minister for Trade and Industry Tan See Leng said this in reply to an MP’s questions in Parliament on Wednesday (Apr 3). Turning to the Energy Efficiency Fund, he said 90 projects amounting to S$3.4 million have been approved to date. The fund has been subsumed under the Enhanced Energy Efficiency Grant which will be available to more companies, said Dr Tan.